EEF welcomes third consecutive year of increased UK R&D spend

MANUFACTURING organisation EEF has welcomed new ONS figures showing that business expenditure on research and development (R&D) increased by more than 5% over 2014.

It is the third consecutive year of growth, but EEF has cautioned against cuts to Government support for innovation in this week’s spending review.
 
Richard Halstead, Midlands and East region director at EEF, said: “UK businesses have upped their investment in R&D for a third consecutive year as a result of ambitious business activity and improved Government support.

“This has led to strong job creation, with business employment in R&D up 7% over the year. Strong growth in expenditure was particularly notable in the transport equipment and electrical equipment sectors.
 
“However, today’s data does not change the fact that the UK still lags well behind competitor nations for R&D spend.

“As the economic outlook remains uncertain – particularly for the manufacturing sector – the Chancellor must get behind innovative businesses and maintain the breadth of innovation support provided by Innovate UK at next week’s spending review. Failure to do so risks Britain falling into the industrial slow-lane.”